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Chapter No. 14 - Salary - Perquisites - Motor Car - (Rent Free / Concessional) - Rule 3(2)
Value of perquisite shall be determined as follows:
Amount reimbursed by the employer 64,000
Less: Deduction for official use ( 1800 x 12 + 900 x 12 ) 32,400
Value of perquisite 31,600
If in the above example, the logbook of the car is maintained and 70 percent of the expenditure is attributable towards the official use of the car.
The value of perquisite shall be determined as follows:
Amount reimbursed by the employer 64,000
Less: Amount for official purposes (70% of 64,000) 44,800
Value of perquisite 19,200
Perquisite valuation for motor car under Rule 3(2): employer reimbursements reduced by official-use deduction, affecting taxable perquisite. Valuation of a motor car perquisite requires deducting the official-use portion from employer reimbursements before treating the balance as a taxable perquisite; absent a log book a fixed deduction method is applied, while contemporaneous usage evidence permits apportionment of the reimbursement by the documented official-use percentage.
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